Income Tax Notifies Taxpayers Over Mismatches In ITR; Here's What You Should Do

The Income Tax (IT) Department of India has sent an advisory to certain taxpayers as there has been a mismatch between disclosures in the income tax returns (ITR) filed by them and information received from the reporting entity. The reporting entities include banks, financial institutions, stock market players, mutual funds, and property registrars. They have stated that the information about their funds and expenses does not match the reports of these reporting entities. The official X handle of the Income Tax has also been posted about this.

As per the latest tweet, the Income Tax Department wrote, “This is not a notice sent to all taxpayers, but is an advisory sent in only those cases where there is an apparent mismatch between disclosures in the ITR and information as received from the reporting entity.” The objective of the communication is to provide an opportunity to taxpayers and facilitate them to provide their feedback online on the compliance portal of ITD and, if necessary, revise their returns already filed or file the return if it has not been filed so far.”

They have also stated that if someone has received such a tax advisory, they should act promptly and provide feedback to the notice through the Compliance Portal, and they are also required to file a revised return or a belated return if it has not been filed yet. Apart from that, the taxpayers also have the option to refute differences on the portal that he doesn’t agree to give reasons for.

The main objective is that the taxpayers’ ITR, TDS, and TCS deductions should be in sync for a smooth tax filing process. They also wanted that, to minimise any issues in the administrative process, taxpayers should carefully review the Income Tax Department’s advisory, cross-verify information, and swiftly correct any differences.

Reportedly, the last date for late submission or amendment of return for assessment year 2023–24 is December 31, 2023. Along with this, the Income Tax Department has requested that taxpayers respond to this communication on a priority basis.